Decentralizing the OATH Ecosystem: Governance Specification
21 June 2023
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1.0 Executive Summary
This comprehensive document outlines a meticulously planned phased approach towards achieving full decentralization of the OATH governance system. The mission is to foster an ecosystem of transparency, inclusivity, and community-driven decision making, empowered by cutting-edge technology. The decentralization roadmap comprises two distinct phases, designed to progressively enhance governance oversight by engaging active OATH governance participants through the advanced Voting Mechanism. The ultimate aim is to realize a state of broad and diverse community decentralization in Phase II, where every participant has a voice.
Phase I serves as a pivotal milestone, empowering OATH Community Delegates to spearhead governance operations within the Governance Proposal Review Committee (GPRC). These six dedicated Delegates navigate the intricacies of the governance landscape, ensuring transparency, accountability, and community engagement. They will also identify potential areas of opportunity to implement prior to moving towards full decentralization in Phase II.
In Phase II, the OATH ecosystem enters an unprecedented era of advancement. The GPRC will expand its composition to include seven elected Community Delegates, revolutionizing the governance landscape by amplifying community representation and decision-making authority.
Through this phased decentralization approach, the community of stakeholders is empowered to actively shape the future trajectory of the OATH ecosystem. Together, an innovative and decentralized governance framework can be utilized, harnessing the transformative potential of the growing OATH Ecosystem technology stack. Through governance, stakeholders can build an ecosystem that thrives on technical excellence, where consensus-driven decisions are made collaboratively, and the aspirations and perspectives of the entire community can be heard.
Welcome to the dawn of decentralized governance in the OATH ecosystem, where technology and community converge to redefine the boundaries of possibility!
1.1 OATH Ecosystem Contributors
A collective of contributors and consultants integrating, developing,improving, and/or maintaining OATH ecosystem software.
1.2 Governance Framework
This document serves as the decentralization roadmap for the OATH ecosystem and governance framework for its decentralized applications (dApps) and any other ecosystem software. It shall be reviewed, updated, and formally released at least once a year with OATH community member feedback and community-approved revisions through a governance proposal.
2.0 Phase I
2.1 Governance Scope
The governance scope outlined in this specification revolves around the governance tokens responsible for governing proposals within the OATH ecosystem. Through the utilization of the Voting Mechanism, these tokens facilitate the determination of affirmative or negative social consensus, ensuring a democratic decision-making process. Moreover, the governance scope extends beyond mere token governance. It encompasses a collective effort to facilitate, support, promote, educate, represent, and advance the open-source and decentralized development of the OATH ecosystem. This includes Governance Resolutions, code, automated transactions, and other essential elements that drive the ecosystem’s growth and sustainability.
Central to this collective endeavor is a commitment to transparency, consensus-building, independence, and censorship resistance. The decentralized purpose of the collective lies in its unwavering dedication to empowering the community, fostering an environment where every voice matters and decisions are made collectively.
2.2 Governance Tokens: Phase I
Voting within the governance framework is facilitated by two tokens: OATH and bonded OATH (bOATH). Each token carries a distinct voting power, with OATH having a voting power of 1x and bOATH possessing a higher weight of 1.5x.
2.3 Governance Proposal Types
There will be five governance proposal types that will be considered in the OATH Governance system: ecosystem sentiment votes, funding proposals, gauge votes, OATH improvement proposals (OIPs), and token grants:
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Ecosystem Sentiment Votes shall gauge the sentiment of OATH governance participants on a particular topic (ex: partner with Balancer, Lido, etc). These will be non-binding and will only serve as a vehicle for governance voters to share their views; thus, no contributor to the OATH ecosystem is required to implement any approved ecosystem sentiment proposal option.
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Funding Proposals shall be used for governance proposals that require work to implement (ex: integrate new dApp to an OATH ecosystem dApp, Reaper supports a new network). FPs must be approved by governance via Snapshot Vote, have a technically / practically feasible specification & execution plan that are consistent with applicable laws, the requirements of the OATH Foundation’s governing documents, and this governance specification, and must also satisfy any applicable vote threshold of approval set forth herein or in any previously-adopted and still effective FP.
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Gauge Votes will be utilized to distribute OATH emissions to designated gauges where applicable in the OATH ecosystem.
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OATH Improvement Proposals (OIPs) shall be proposals utilized to perform maintenance, upgrades, or improvements to existing OATH ecosystem dApps / software / front end websites
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Token Grants will be utilized to incentivize development of the OATH ecosystem via new contributors and associated marketing efforts by individual contributors, consultants, or development teams. Open for users to define how the grant would be used to further the OATH ecosystem.
2.4 Governance Proposal Submission / Receiving Mechanism
During Phase I, the GPRC will establish designated channels on the OATH Governance Forum to receive and review draft governance proposals marked as “ready to review.” These channels will serve as the primary submission platform for community members to share their proposals with the Governance Proposal Review Committee (GPRC) and the rest of the OATH ecosystem. A proposal shall be marked “ready for review” when three GPRC members state a “ready for review” on a proposal.
To ensure a streamlined process, the GPRC Delegates will actively collaborate with stakeholders, engaging in direct discussions to shape proposals based on community demand and feedback. They will also provide standardized templates to maintain consistent quality and substance across proposals as required.
2.5 Governance Proposal Review Committee (GPRC): Phase I
In Phase I, the GPRC shall consist of six Delegates (four current OATH contributors and two Community Delegates) that will review governance proposals submitted by the OATH community. The Phase I GPRC shall review and recommend the release, rework, or termination of a governance proposal within 28 calendar days of initial receipt. The GRPC will consider community input to proposals prior to making a recommendation on an open proposal. Decisions of the GPRC will state a recommendation to release the proposal for voting to the OATH communities, offer suggestions for rework (that will need to be resubmitted to the GPRC for review), or recommend to terminate the proposal if it is deemed to not be in the best interest of the OATH community.
In order to move to the next Phase of the decentralizing roadmap, the GPRC will submit a proposal to the community that affirms the planned specification details for Phase II or provides updates to the model for the ecosystem to weigh in on prior to implementation.**
All GPRC recommendations will be logged and archived for historical reference in an archive read-only channel.
2.6 Community Delegates
In Phase I of the OATH ecosystem decentralization roadmap, the two Community Delegates will be nominated by current OATH contributors to participate in the GPRC as Community Delegates. Community Delegates shall:
- Serve on the Phase I GPRC in conjunction with the four current contributors
- Disposition of OIPs, Funding proposals, and any other governance proposals
- Distribute awarded Token Grants
- Recommend a course of action for approved Ecosystem Sentiment Votes
To compensate Delegates for their time actively moderating the Governance Forum, reviewing governance proposals, and working on the GPRC, a token grant consisting of 30,000 in OATH shall be distributed monthly to each Delegate.
2.7 Community Delegate Requirements
Community Delegates are required to meet the following requirements:
- Disposition all governance proposals submitted to the GPRC within 28 days of initial receipt
- Shall attend a minimum of 75% of GPRC proposal review meetings
- Serve as a competent and qualified contributor for, and act in good faith in relation to, the OATH ecosystem and its governance
- Maintain sufficient working knowledge of the OATH ecosystem
- Maintain a general presence and level of responsiveness / competence in communicating and interacting with the community regarding proposals, governance, and the OATH ecosystem
- Serve for a six-month term
- Refuse personal bribes or other third-party incentives that seek to influence the Delegates approach to the OATH ecosystem while serving as a Delegate
Delegates who fail to attend or otherwise participate in three out of five consecutive proposal review meetings shall be removed from the GPRC (this supersedes the 75% attendance requirement). In the case that a Delegate is removed from serving, an emergency out of cycle Delegate election shall be held to fill the vacant spot on the GPRC.
2.8 Community Delegate Elections Process: Nominations
In Phase I, Community Delegates shall be nominated by current OATH contributors. At the end of the first six month term if the GPRC recommends Phase I extend past the six month mark, Community Delegate Elections shall be held. Community Delegates who receive at least three nominations from the Community shall move on to the next round of the election process that include a written and optional oral component to complete the minimum requirements to move on to a Community Election vote.
The written section requires nominees to submit three sections of information for community review: their history of using DeFi products (especially OATH dApps), a description of their motivation for why they wish to serve as a Community Delegate, and a statement of their commitment to meeting Delegate time / responsibilities requirements. Please note, an example Community Delegate proposal shall be provided by a member of the GPRC for the first Community Delegate election.
(Optional at the discretion of the GPRC) The oral portion of the Community Delegate process shall include an AMA in the OATH ecosystem discord, where users will be invited to ask questions and voice concerns about potential nominees.
2.9 Community Delegate Election Process: Vote
Community Delegate Election processes shall begin every six months unless the initial Delegate Service Requirements are changed via a governance proposal. Election voting shall take place using the Voting Mechanism through an Ecosystem Sentiment Vote using a ranked choice voting option, which shall last a minimum of seven days. At the end of the vote, results shall be communicated via the Governance Forum to the larger OATH community.
Results from the vote will be archived for record keeping purposes in a read-only channel. Community Delegates elected to the GPRC shall begin their tenure at the next subsequent GPRC meeting (coordination will begin after the election to find a time that works best for the Community Delegates). Election votes shall take place every 6 months as required.
2.10 Emergency Vote
In the case that a time-sensitive proposal or Election needs to be voted upon by the community, a GPRC member will submit the governance proposal to the OATH community via the OATH Governance Forum labeled Emergency Proposal. Discussion regarding the emergency vote shall be limited to a maximum of 24 hours in the governance discord channel. The GRPC shall determine the discussion timeframe using the minimum of at least one hour of discussion up to the maximum threshold of 24 hours. Upon the completion of the discussion timeframe, a GPRC member shall utilize the Voting Mechanism to begin a vote on the Emergency Proposal.
The emergency vote time length shall be determined by the GPRC (to be between one hour to 24 hours) who will notify OATH ecosystem members before the vote discussion timeframe begins. Results shall be recorded and archived at the end of the emergency vote in a read-only channel for record keeping purposes. Please note that due to the time sensitive nature of emergency votes, they shall require half of the defined minimum implementation threshold (MIT) designated in this governance specification Phase to move forward with an affirmative social consensus.
2.11 Proposal Process – Phase I
All governance proposals will be submitted to the GPRC for review using the proposal draft created by the GPRC. Proposal process listed below:
2.12 Voting Mechanism
In Phase I, the Snapshot tool (Snapshot) will be utilized as the Voting Mechanism. Proposals that meet the Minimum Implementation Threshold (MIT) in the affirmative shall be considered approved. Proposals that do not meet the MIT or that meet the MIT but in a negative stance shall not be considered approved.
After a vote concludes, the governance decision will be recorded, announced to the OATH community via the governance forum. Once the vote concludes, the results of the vote will be archived for record keeping purposes in a read-only channel.
2.13 Vote Consensus
Consensus shall be assumed in the affirmative if the minimum implementation threshold for a proposal vote is met and the affirmative option has more than 50% of the votes. If the minimum implementation threshold is not met, the proposal shall assume consensus is not met.
2.14 Minimum Implementation Threshold
The MIT to pass a governance proposal in the OATH ecosystem for Phase I shall be equal to 5% of the circulating token supply, equivalent bOATH LPs, or a combination of both.
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If 5% of the circulating token supply votes on the proposal, and the affirmative option in the proposal has greater than 50% of the vote, the vote shall be approved.
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If less than 5% of the circulating token supply votes on the proposal in the affirmative option, the MIT is not met and the governance proposal shall be required to be reworked / resubmitted, or terminated.
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If more than 5% of the circulating token supply votes on the proposal and the negative option has greater than 50% of the vote, the vote will not be approved (and will need to be reworked / resubmitted, or will be terminated).
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The GPRC will evaluate the MIT requirements as Phase I progresses to determine if modifications to the quorum threshold are required.
2.15 Funding Proposal, OIP, or Token Grant Implementation
In Phase I, the distribution of Token Grants will be carried out by the current OATH contributors. These contributors, with their expertise and experience, will ensure the proper allocation of tokens to approved governance proposal teams.
The execution of approved governance proposals, including Funding Proposals and OIPs, will be the responsibility of the proposal team. The proposal team will work diligently to implement the proposals, adhering to applicable laws, regulations, and the governance specification outlined in this document. They will develop and execute technically and practically feasible plans consistent with the requirements set forth herein.
3.0 Phase II - Full OATH Ecosystem Decentralization
3.1 Governance Scope
Reference Section 2.1 above. No changes between Phase I and Phase II.
3.2 Governance Tokens
Reference Section 2.2 above. No changes between Phase I and Phase II.
3.3 Governance Proposal Types
Reference Section 2.3 above. No changes between Phase I and Phase II.
3.4 Governance Proposal Submission / Receiving Mechanism
Reference Section 3.4 above. No changes between Phase I and Phase II.
3.5 Governance Proposal Review Committee (GPRC): Phase II
In Phase II, the GPRC shall consist of seven Community Delegates that will review governance proposals submitted by the OATH community. Prior to the end of Phase I, a Community Delegate election shall take place to establish the seven Delegates that will participate in the GPRC for Phase II. In Phase II the GPRC collects input and discusses the governance proposal with OATH community members via the Governance Forums. Prior to utilizing the Voting Mechanism, the GPRC may recommend a course of action for a proposal (or may opt to put the proposal to a vote as is). All GPRC recommendations will be logged and archived for historical reference in an archive read-only channel.
3.6 Community Delegates
In Phase II of the OATH ecosystem decentralization roadmap, the seven Community Delegates will be nominated by the community to participate in the GPRC as Community Delegates. Community Delegates shall:
- Serve on the Phase II GPRC
- Disposition of OIPs, Funding proposals, and any other governance proposals
- Distribute awarded Token Grants
- Recommend a course of action for approved Ecosystem Sentiment Votes
To compensate Delegates for their time actively moderating the Governance Forum, reviewing governance proposals, and working on the GPRC, a token grant consisting of 30,000 in OATH shall be distributed monthly to each Delegate.
3.7 Community Delegate Requirements
Community Delegates are required to meet the following requirements:
- Actively moderate the governance forum and associated social media channels
- Disposition of all governance proposals submitted to the GPRC within 28 days of initial receipt
- Shall attend a minimum of 75% of GPRC proposal review meetings
- Serve as a competent and qualified contributor for, and act in good faith in relation to, the OATH ecosystem and its governance
- Maintain sufficient working knowledge of the OATH ecosystem
- Maintain a general presence and level of responsiveness / competence in communicating and interacting with the community regarding proposals, governance, and the OATH ecosystem
- Serve for a six-month term
- Refuse personal bribes or third-party incentives that seek to influence the Delegates approach to the OATH ecosystem while serving as a Delegate
Delegates who fail to attend or otherwise participate in three out of five consecutive proposal review meetings shall be removed from the GPRC (this supersedes the 75% attendance requirement). In the case that a Delegate is removed from office, an emergency out of cycle Delegate election shall be held to fill the vacant spot on the GPRC.
3.8 Community Delegate Elections Process: Nominations
In Phase II, Community Delegates shall be nominated by current Community Delegates or the community. At the end of a six month term, a Community Delegate Election shall be held. Community Delegates who receive at least three nominations from the Community (including Community Delegates) shall move on to the next round of the election process that include a written and optional oral component to complete the minimum requirements to move on to a Community Election vote.
Please note that any Community Delegate that served on the GPRC must run for reelection at the end of their 6 month term.
The written section requires nominees to submit three sections of information for community review: their history of using DeFi products (especially OATH dApps), a description of their motivation for why they wish to serve as a Community Delegate, and a statement of their commitment to meeting Delegate time / responsibilities requirements.
Please note, the GPRC shall provide a template for the Community Delegate Nominees to utilize for their Community Delegate Election written requirement.
(Optional at the discretion of the GPRC) The oral portion of the Community Delegate process shall include an AMA in the OATH ecosystem discord, where users will be invited to ask questions and voice concerns about potential nominees.
3.9 Community Delegate Election Process: Vote
Community Delegate Election processes shall begin every six months. Election voting shall take place using the Voting Mechanism through an Ecosystem Sentiment Vote that shall last a minimum of seven days. At the end of the vote, results shall be communicated via the Governance Forum to the larger OATH community.
Results from the vote will be archived for record keeping purposes in a read-only channel or archive. Community Delegates elected to the GPRC shall begin their tenure at the next subsequent GPRC meeting (coordination will begin after the election to find a time that works best for the Community Delegates). Election votes shall take place every 6 months.
3.10 Emergency Vote
Reference Section 2.10 above. No changes between Phase I and Phase II.
3.11 Proposal Process – Phase II
Refer to Section 2.11 above. No change between Phase I and Phase II.
3.12 Voting Mechanism
In Phase II, the Snapshot tool (Snapshot) or equivalent will be utilized as the Voting Mechanism. Proposals that meet the MIT will be accepted as approved. Proposals that do not meet the MIT will not be approved. After a vote concludes, the governance decision will be recorded, announced to the OATH community via the Governance Forum. Once consensus has been reached or the voting end time has been reached, the results of the vote will be archived for record keeping purposes in a read- only archive.
3.13 Consensus
Refer to Section 2.13 above. No change between Phase I and Phase II.
3.14 Minimum Implementation Threshold
The MIT to pass a governance proposal in the OATH ecosystem for Phase II shall include a minimum token threshold and minimum number of voter threshold. The minimum token threshold is equal to 10% of the circulating token supply, equivalent bOATH LPs, or a combination of both.
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If 10% of the circulating token supply votes on the proposal, and the affirmative option in the proposal has greater than 50% of the vote, the vote shall be approved.
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If less than 10% of the circulating token supply votes on the proposal, then the MIT is not met and the governance proposal shall be required to be reworked / resubmitted, or terminated.
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If more than 10% of the circulating token supply votes on the proposal and the negative option has greater than 50% of the vote, the vote will not be approved (and will need to be reworked / resubmitted, or will be terminated).
A new requirement in Phase II, there shall be a minimum number of voters threshold that shall be equal to 10% of OATH holding wallets across all chains OATH exists on (currently Arbitrum, BNB Chain, Ethereum, Fantom, and Optimism). At the time of governance proposal submission to Snapshot for an OATH governance vote, a Community Delegate shall determine what number 10% of all OATH holder wallets equals (and shall communicate the threshold to the OATH community).
In the case that the MIT is not reached for one of the two requirements, the governance proposal shall not pass and will need to be reworked via the GPRC review process or shall be terminated.
- The GPRC will evaluate the MIT requirements as Phase II progresses to determine whether to suggest modifications to the threshold are required.
3.15 Funding Proposals, OIPs, or Token Grant Implementation
In Phase II, the distribution of Token Grants will be carried out by the GPRC or OATH contributors. These contributors, with their expertise and experience, will ensure the proper allocation of tokens to approved governance proposal teams.
The execution of approved governance proposals, including Funding Proposals and OIPs, will be the responsibility of the proposal team. The proposal team will work diligently to implement the proposals, adhering to applicable laws, regulations, and the governance specification outlined in this document. They will develop and execute technically and practically feasible plans consistent with the requirements set forth herein.
4.0 Acronym list
AMA - Ask Me Anything, a format for interactive discussions and Q&A sessions.
bOATH (bonded OATH) - 80% OATH / 20% WETH Balancer LP, used for Governance.
DeFi - Decentralized Finance
GPRC - Governance Proposal Review Committee, responsible for reviewing governance proposals.
LP - Liquidity Provider.
MIT - Minimum Implementation Threshold, the minimum number of OATH and / or bOATH required for a proposal to be approved.
OATH - Native token of the OATH ecosystem, used for Governance
OIP - OATH Improvement Proposal, used for governance proposals that require implementation.